Online Academies, Freelance Teachers to Face Taxation Under Pakistan’s Finance Bill 2025

In a significant move under the newly proposed Finance Bill 2025, the federal government has announced the introduction of income tax on online academies and freelance teachers, marking its first attempt to tax digital-education providers.

Alongside this measure, e-commerce businesses operating through online marketplaces will also be subjected to new tax obligations as authorities aim to expand the tax base within the rapidly growing digital sector.

Additionally, the Federal Board of Revenue (FBR) plans to impose taxes on revenues generated by recreational clubs across the country, including the prestigious Islamabad Club.

However, the Senate’s Standing Committee on Finance, chaired by Senator Saleem Mandviwala, opposed the taxation of the Islamabad Club, citing concerns that it would place an undue financial burden on its members. The committee recommended implementing an annual income-exemption threshold of PKR 1.2 million for all clubs.

While the committee granted relief to smaller leisure-club operators through this exemption, it rejected proposals to exempt micro and small-scale online businesses from the newly introduced digital-economy taxes.

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